In one of my first blogs (read it here) I mentioned that I am currently in between jobs. The job search is a giant pain in the ass is really going nowhere. I am thinking about going into business for myself doing consulting and figured I’d throw some of my thoughts out here in the blog and see what you guys think.
First things first my background is in sales, in many different industries so I know first-hand that most small businesses are overpaying for 75% of the things that they need to keep their business running. They are constantly on the move and don’t have time to keep an eye on these things so that money essentially keeps getting lit on fire. I want to try and help those small business owners put some of that money back into their pockets.
How do I do that? I market myself as their spend management consultant/outsourced procurement department. I’ll take a look at their current situations, make suggestions of how they can cut costs and they wont pay me anything unless they take my suggestions and move forward.
How do I do that? When I find a pain point where the are overspending (for a simple example, credit card processing) I do the research on multiple companies providing the same service at a similar or better quality and negotiate pricing from them. I also partner with many companies in each verticle that I can trust in order to ensure satisfaction of my client.
How do I make money. When the client moves forward they would only pay me a percentage of their savings for a certain time period. I need to think more about this but that is just the first thing that comes to mind. If it is single project based for instance say they had the windows cleaned the previous year for 10k and I get them the same service for 6k they would pay me a one time percentage (figure 30% here) of the savings. This would work out to $1200 in this case.
Why does this work? The client saves money 100% of the time, the newly used vendor makes money and a new client, and I make money, gain many more potential clients and lower the costs of my client. It’s a win-win-win overall.
Would love to hear what you think and if I should go for it. If you are traveling today be safe!
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